Is SAX facing liquidation?

SA EXPRESS is facing
an application for
liquidation, which has
been brought to the Gauteng
High Court by aircraft leasing
company, Solenta Aviation.
According to widespread
media reports, Solenta
Aviation director of flight
operations, Stephen Jolly,
said in an affidavit submitted
to the court that SAX owed
the company R87,3m for
the lease of aircraft and
other services provided
between October 2016 and
June 2017.
SAX reportedly doesn’t
deny that it owes Solenta
Aviation money, but the
airline is intending to oppose
the application because of
a dispute over the amount
owed. Ceo, Victor Xaba,
stressed that SAX was not in
distress and that the airline
was able to pay its debts.
Although the airline was
unavailable for comment at
the time of going to press,
aviation specialist, Joachim
Vermooten, told TNW that
SAX’s dispute on the
quantum of the claim might
stall matters for a while,
but ultimately Government
would have to decide to
make the payment on behalf
of SAX, otherwise Solenta
might eventually obtain a
liquidation order.
Says Joachim: “In these
circumstances, it is very
difficult to see how the
directors do not conclude
that SAX is in financial
distress, upon which they
need to put SAX into
business rescue in the
absence of Government
assistance.”
In March this year, Public
Enterprises Minister,
Lynne Brown, told
Parliament the airline was
unable to repay R150m to
two banks. Government
intervention was required
to reach a settlement on a
repayment plan.